Our comparison of CFD Brokers in Australia
If you are wanting to enter the world of CFD trading then you’ll need to find a reputable CFD brokerage service. Thankfully, there are numerous online brokers in Australia catering to every level investor. Each platform will offer similar core services but will have its own standout features and USP.
So how do you choose that one that is best for you? Our online broker comparison allows you to quickly find the top platforms currently on the market and see how they measure up against one another. What’s more, each CFD broker review published on Wetten.com gives you an unbiased and objective view of that platform’s key features – so you can decide for yourself whether or not it meets your trading needs.
What is CFD Trading?
One of the great things about CFD trading is just how accessible it is for the average investor – with relatively low entry costs and an abundance of platforms offering CFD brokerage. However, before diving into our broker reviews and getting started, it’s a good idea to make sure you know exactly what CFDs are and how they are traded.
CFD is an initialism for a contract for difference – a popular form of derivative that enables traders to speculate on the price movement of an asset in the financial markets. These can include forex, indices, commodities and stocks.
A CFD is effectively a contract between a buyer and a seller that stipulates that the buyer must pay the seller the difference between the value of an asset upon opening a position and its value when the contract matures. One of the key features of CFDs is that they allow traders to profit even if an asset decreases in value.
Any reputable online CFD broker will offer plenty of learning materials and explanations of CFDs, but the important thing to note at this stage is that you never own the underlying asset and the actual value is not considered as part of a CFD – the only thing that matters is the price change between the opening and closing of the trade.
CFD trading is one of the easiest ways of gaining exposure to numerous financial markets – making it a popular option for traders operating through online CFD brokers. CFD brokers in Australia usually provide everything you need to get started in a single, user-friendly interface. But what exactly does CFD trading involve?
If the term is completely new to you, you might want to have a read through of our guide to CFD trading for beginners, which starts with the very basics. However, if you already have some familiarity with CFDs and/or derivatives, then you’ll probably already be aware that trading them allows you to speculate on the price movement of a given asset – up or down.
For example, if you believe the value of an asset will increase, you open a long position through a CFD broker, agreeing on the parameters of the trade, such as fees, leverage and the investment amount. If the position closes in profit, the broker pays the difference. Alternatively, if you think the asset’s value will decrease, you can open a short position. If the position closes at a loss, the broker once again pays the difference.
Trading is conducted through a specialist broker service that allows you to enter and exit the markets within moments and provide up-to-the-second information on the price movements of a given asset.
Finding a CFD Broker in Australia
The top CFD platforms in Australia won’t be hard to find. In fact, you’ve probably already seen several advertised online. However, choosing the best CFD platform in Australia for you personally can depend on a variety of factors. To help you make your decision, there are a few questions you can ask yourself before getting started.
What kind of trader are you?
If you’re new to trading in general, then you might be better off looking into the best online brokers for beginners. These platforms will usually offer a simple to use interface along with plenty of information and educational resources to help you get started. Alternatively, the more seasoned trader might prefer more advanced CFD brokers Australia, which offer professional-level tools and metrics. Some of the top online CFD brokers might even offer multiple trading platforms, catering to all types of investor.
Do you plan to trade other financial instruments?
When starting out, it’s a good idea to focus on trading a small number of asset classes. However, you may soon find yourself looking to branch out. The best CFD platform in Australia may not be the best one for, say, ETF trading in Australia. It can save time, in the long run, to consider your future aspirations when choosing your provider.
If you are interested in other investment types, then feel free to browse some of our other broker guides, such as our options broker reviews or our guide to forex trading in Australia.
How tech-savvy are you?
If you’ve already seen a trading platform interface, you’ll know they can seem pretty complicated to the uninitiated. Whilst the best CFD platform in Australia will have in-depth guides on how to use its features, those who are a little less tech-savvy might prefer the option of a more basic interface. Some CFD brokerage providers will offer both an entry-level and professional-level trading platform, so be sure to refer to our CFD broker comparison to find out what each operator has to offer.
Will you be trading on the go?
If you are planning to carry out frequent trades and prioritise convenience, then you might want to opt for a CFD broker in Australia that offers a good mobile trading platform. Each CFD broker review we carry out will consider all the trading platforms an operator has to offer – including those optimised for mobile and tablet use.
The best CFD platform in Australia
Hopefully, you are already building an idea of what you need from an online CFD broker, but to help you choose the best CFD platform in Australia for you personally, each CFD broker review we conduct will let you know exactly what each one has to offer and how it compares to competitors on the market.
Our CFD broker comparison will let you know how the top platforms rate against one and other – but ultimately you’ll need to read each CFD broker review to find out the finer points of the different platforms.
Each platform has something different to offer and you may find over time your preferences change. However, you can be fairly confident that any of the top 5 CFD brokers will more than meet your needs – especially if you are new to trading.
How our experts test CFD brokers Australia
To ensure we provide you with an insightful and unbiased view of the top CFD brokers in Australia, our team of experts subject each platform to a thorough review process, involving a careful investigation of numerous key features. We also ensure we research the regulatory and security credentials of each CFD broker, to ensure they are completely trustworthy. A few of the things we look out for include:
One of the first things we look at in our CFD broker comparison Australia is what trading options the platform provides. In addition to CFDs, a leading broker will usually offer access to other financial products, including indices, commodities, stocks, forex and cryptocurrency.
Trading platforms often offer different types of account, targeted at the different levels of investor. For example, some platforms offer a demo account, to allow novices to get to grips with the market, or VIP accounts for professional traders, that offer access to increased leverage. Naturally, this forms an important feature for our reviews.
Costs and Fees
CFD brokers in Australia will generally have two fee structures: either they will charge a fixed commission for transactions, or they will profit from having a slightly wider-spread than fee-charging platforms. In addition to trading fees, we also consider the transactional fees associated with each operator.
The best CFD broker in 2020 will inevitably support the latest patent options. Whilst Mastercard/Visa are standard across the industry, some traders might prefer e-payment options, such as PayPal, or even support for cryptocurrency deposit. What’s more, CFD providers in Australia will naturally accept AUSD, but some international traders might be looking to fund their account in other denominations.
Usability, Look and Feel
For each CFD broker review we carry out, our experts take a hands-on look at the usability and general layout of an operator, testing its website and platform for functionality and ease of use. The best online CFD broker can offer all the latest tools and metrics, whilst still being innovative to use and easy on the eye.
As we have discussed, there are different levels of experience among CFD traders. Those new to the market are unlikely to want to be bogged down with overly complicated interfaces and myriad information feeds that they don’t understand. On the other hand, experienced traders will want as many tools as possible. With this in mind, the best CFD broker in 2020 will offer more than one trading platform.
Trading can be a complicated business, so it’s important to know that help is at hand if you need it. For this reason, customer service forms an important part of our CFD broker Australia review criteria. We look at what contact options are available and when, as well as general response times.
Licence and Regulation
Different countries have different rules and regulations when it comes to CFD trading. Just as online stock brokers in Australia must adhere to strict rules, so must any platform offering day trading in Australia. We conduct a thorough review of each platform’s regulatory credentials, to make sure everything is above board and you can start investing confidently with your chosen provider.
Trading Tips for Beginners
Choosing a CFD broker in Australia is the first step and one that requires plenty of research. However, once you have chosen a provider, you are ready to enter the markets. This accessibility is one of the things that makes CFD trading so popular, but new traders should exercise caution and remember that any kind of trading carries an inherent risk.
With this in mind, we have put together the following tips to help you get off to the best possible start. Whichever CFD broker you choose, the advice below involves tried and tested ways to start your journey into CFD trading.
Use a demo account
Trading any financial instrument or derivative is a skill that, like any other, has a learning curve. To avoid risking real money before you’ve built up any experience, many platforms will offer a practice account. This is effectively a simulator that allows you to trade on real markets using dummy funds. We advise anyone new to the markets to spend some time practising before committing real funds – it’s worth taking the time to build solid trading habits.
Communicating with other traders about strategies and investment tips can provide a wealth of information for those new to the CDF market. Social trading in Australia has surged in popularity in recent years and presents one of the easiest ways for new traders to get to grips with professional-level strategies by simply copying and pasting the trades of the top performers.
Plan your trading strategy
Whilst copying pro traders is a great way to find opportunities in the market, it’s always advisable to have your own trading strategy. The more experience you gain, the more adept you’ll become at identifying trends. However, from the beginning you can stick to simple tactics, such as limiting the number of trades you make per day, sticking to a budget or even setting up a schedule of working hours for your trading.
Stick to what you know
Trading CFDs is one of the most common routes into the financial markets, but newbies may also be tempted to branch out into other assets, such as options, cryptocurrency or forex. Whilst it’s great to have access to so many markets, novice traders should stick to the industry they know best or have researched the most. Once experience has been gained, then perhaps consider branching out.
Never stop learning
Financial markets are complex and ever-changing so investors should avoid falling into the trap of thinking they have learned enough – the most successful traders continually add to their skillset and stay up to date with the latest technological developments. This is especially true of AI-facilitated trading, as new algorithms are constantly being published or updated.
Think About Leverage
Once you’ve gained some trading experience, you’ll notice that day trading involves numerous trades for small profits. One of the ways in which professionals maximise their returns is by using leverage. Using leverage allows you to gain much more exposure to the market, so those small profits are amplified without you having to lay down additional capital. Effectively, leverage is a kind of loan from your brokerage service.
However, novice traders should be aware that, whilst leverage is a great way maximising returns, it can also amplify losses in the same way and lead to you losing more than you initially invested. As such, using leverage should be treated with caution.
Conclusion – Finding CFD brokers in Australia
The number of trading platforms and brokers available in Australia has exploded in recent years, making CFD trading accessible to anyone with a computer or smartphone. There are also more educational resources available than ever before – meaning that even those unfamiliar with the financial markets have the opportunity to get involved.
The aim of our comparison is to help you decide which CFD broker is best for you personally. By checking out our reviews, you’ll be able to see what each platform has to offer and whether or not it can meet your requirements. Of course, if you are already using a brokerage service, you can also see how it measures up against leading competitors.
Here at Wetten, we also offer guides on just about every other aspect of the financial markets. Aside from our in-depth broker reviews, we also offer information on the different types of assets available. For example, if you are interested in other forms of trading, then feel free to look into our posts on online futures brokers or crypto brokers in Australia.
When it comes to trading any financial instrument, information is king. It’s important to make sure you do your research – both when choosing a platform and when making transactions. Trading CFDs carries inherent risk, but by sticking to a strategy and reading through some of our guides, you put yourself in a much stronger position from the outset.
CFD Brokers Australia – FAQ
💲 Which are the best online CFD brokers Australia?
There are numerous CFD brokers now operating in Australia and each one brings something different to the table. Choosing the best one will depend on several factors – not least what your investment goals are and your current level of trading experience. Our CFD broker comparison will let you know what the top operators are and each of our reviews looks at the key features of each one, so you can decide for yourself whether they are suitable for your trading needs.
🤔 How do I find a good CFD broker?
When you’re looking for a good CFD broker to open an account with, sometimes it can seem like you’re spoilt for choice. There are hundreds of platforms now providing brokerage services and on the surface, many seem to be offering a similar product. The best way to find a suitable CFD broker is by checking out our comparison of the top operators and their associated broker reviews. This way, you can check out what the key features of each broker, as well as what their fee structure is like.
❓ What are CFDs?
Anyone new to the world of trading might find themselves confused by the different asset classes available. It’s important to make sure you fully understand exactly what assets and derivatives are before committing funds. Fortunately, there are plenty of resources available on the internet. If you’re curious about trading CFDs, then check out our guide to CFD trading to find out more.
☝🏻 Is CFD trading legal in Australia?
CFD trading in Australia is regulated by the Australian Securities and Investment Commission. To ensure you’re trading activities are all completely above board, it’s important to establish the regulatory credentials of your chosen CFD broker. Each of our broker reviews looks at the licensing of a given operator to ensure that it has met all the necessary requirements to operate in Australia. As such, you can trade confidently knowing that the platform is completely legit when trading stocks in Australia.
🧳 What fees do CFD brokers charge?
Different CFD trading platforms will have different fee structures. Generally speaking, they either charge a fixed commission or offer fee-free trading but with wider spreads. Our CFD broker comparison looks at the fees and charges of each platform, so you can see how they measure up. After all, no one wants to see their trading profit eaten away by unduly high trading fees.